Finding Text
Finding Type – Material Weakness 2023-003 Criteria – Management should ensure that the grants awards submitted from the Organization are reported accurately to HRSA.
Condition – It was noted that there were $317,730 of distributions reported on the portal submission as healthcare expenses in which management did not keep detailed support.
Context – There were no material effects to the overall financial statements.
Cause – Lack of review of the submission to determine that the grant award was submitted as intended and detail kept to support it.
Questioned Costs – $317,730
Effect – As a result of this issue, the amount of grants reported on the submission under the expenditures section of the portal were not supportable.
Recommendation – We recommend adequate controls be put in place to ensure accurate reporting of grant funds received.
Views of Responsible Officials – Management acknowledges that they did not keep detail of the $317,730 of reported healthcare expenses, but does have unused lost revenues exceeding $1 million to cover it.